Todos Medical Announces Insolvency Proceedings in Israel - Seite 2

On December 18, 2023, the Company’s subsidiary 3CL Pharma USA, Inc. (“3CL Pharma”) received a notice of default from its licensor NLC Pharma, Ltd. related to certain unpaid fees owed under the license entered into between NLC Pharma and 3CL Pharma on September 15, 2023. NLC subsequently agreed to amend the terms of the notice of default to provide 3CL Pharma with relief as it relates to monies owed under the license agreement, and time available to make such payments. of the $331,771.39 currently owed to NLC under the terms of the license, NLC has agreed to accept a payment of $162,000 by December 29, 2023 and an additional payment of $132,000 by March 1, 2024, provided that during the period of time between January 1, 2024 and February 28, 2024, 3CL Pharma launches its proposed crowdfunding campaign to raise funding for a Long COVID clinical trial for a Medical Food version of Tollovid.

On December 19, 2023, the Company submitted a plan of reorganization to the Trustee in Israel that comprised the following elements:

1. Todos Medical will seek to cause its secured and unsecured debt holders to exchange their securities for 1) shares of 3CL Pharma priced based upon the pending crowdfunding campaign offering price or 2) shares of Todos Medical LTD. based upon the per share price at the time the Company exists the insolvency process;
2. Todos will cause its 100%-owned subsidiary Corona Diagnostics to continue to pursue outstanding unpaid invoices from several of its former COVID PCR Lab Supply clients totaling over $5 million. Corona Diagnostics has entered into a contingency agreement with a well-known law firm to pursue the two largest of the outstanding four claims, and has already won an award of over $400,000 from a non-binding arbitration hearing. Corona Diagnostics has a mediation hearing set for January 18, 2024 in regards to unpaid invoices totaling over $3.5 million with its largest former lab client;
3. Todos will pursue outstanding obligations owed to it by the shareholders of American Lab Services under its Provista Diagnostics joint venture agreement entered into May 2023. On October 3, 2023, the Company delivered a formal notice of default to the shareholders of ALS related to the deficiencies in their performance obligations, and per the terms of the agreement they were granted a 90-day cure period that ends in early January 2024;
4. Provided 3CL Pharma is able to raise sufficient funding from its crowdfunding campaign, it will purchase Todos Botanicals outright from Todos Medical Ltd. in cash in order to consolidate all dietary supplement manufacturing and distribution under 3CL Pharma, as well as shore up Todos Medical’s solvency so that it can pursue its lab testing and proprietary diagnostics business plan.